Jakarta—Despite the region’s high electrification ratio, there are still inequalities in the quality and reliability of electricity access. For millions of people in rural and remote areas, the presence of electricity does not necessarily mean increased productivity or an easier life. In this context, decentralised, locally-based renewable energy is becoming a promising solution.
Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), wrote in a statement on Thursday, April 24, that energy decentralisation is not just a technical solution but an important strategy to strengthen energy security, expand community participation, and improve social justice in the energy transition.
“Decentralised energy is not just about building solar panels on rooftops. It’s about building an inclusive system, able to reach those who have been left behind, and provide real benefits to local lives and economies,” Fabby said.
For two days, starting Tuesday, 22 April, dozens of energy experts from within and outside the ASEAN region gathered for the Regional Dialogue: Promoting Decentralised Energy Access in Southeast Asia, organised by the Institute for Essential Services Reform (IESR). The forum, held during Malaysia’s chairmanship of ASEAN, is an important venue for strategising together to address the region’s increasingly complex energy challenges.
While most ASEAN countries have reported electrification ratios exceeding 90 per cent, access to reliable, quality, and affordable electricity is still a luxury for some communities. Weak connections, unstable supply, and high operational costs continue to affect the lives of people in remote villages, islands, and mountainous regions.
Fabby also recognised that implementing these systems in ASEAN still faces significant obstacles, from limited technical infrastructure to limited access to financing to a lack of trained local labour.
Prof Ji Zou, CEO and President of Energy Foundation China, expressed a similar view. According to him, decentralised energy has advantages in terms of scalability, sustainability, and accessibility that make it ideal for widespread implementation in the region.
“Decentralised energy will be the foundation of ASEAN’s energy security and prosperity. By developing hybrid mini-grids, distributed PV systems, and local bioenergy, countries in the region can drive innovation, create jobs, and accelerate economic growth equitably,” Prof Zou said.
He also emphasised that market momentum now favours increased investment in the sector, with demand growing alongside productive electricity needs from household industries to MSMEs.
Policy integration, innovative funds, and regional collaboration
During the forum, IESR facilitated a discussion involving 29 cross-country resource persons and 97 participants from 11 countries. The discussion resulted in a series of strategic recommendations to be incorporated into the ASEAN Plan of Action for Energy Cooperation (APAEC) 2026-2030 document.
Some of the key recommendations include integrating decentralised energy policies into the ASEAN energy action plan as an alternative to reliance on centralised electricity systems. The forum also emphasised the importance of diversifying financing sources, including results-based financing, green bonds, public-private partnerships, and blended finance, to expand the reach of energy projects.
In addition, community-based empowerment models that involve local governments and civil society in every stage of project development are considered crucial for successful implementation. Harmonisation of regulations across countries, development of national roadmaps, incentives, and risk mitigation measures are also proposed as important steps to attract more private investment.
Other recommendations include technical and institutional capacity building through training programmes, regional certification, and developing decentralised energy knowledge centres. Finally, the forum suggested building a continuous dialogue and monitoring platform to ensure accountability and encourage regular evaluations between countries.
Collaboration key to ASEAN’s energy future
Chrisnawan Anditya, Acting head of the bureau of communication, public information services, and cooperation at the Indonesian Ministry of Energy and Mineral Resources, highlighted the importance of cross-border collaboration in accelerating the adoption of decentralised energy.
“Regulations in each country may vary, but the goal is the same: to ensure that all people have equitable and sustainable access to energy. In terms of policy, technology and funding, cross-country collaboration is the only way to achieve this,” says Chrisnawan.
With energy needs rising as the region’s economies grow, the old approach of relying on large infrastructure and centralisation is no longer enough. Decentralised energy that harnesses local potential, engages communities, and is rooted in social justice is taking its place as the solution of the future.
This IESR-initiated regional dialogue is not just about exchanging ideas, but marks a concrete step towards building an inclusive, equitable, and empowering energy system in Southeast Asia. (Hartatik)
Banner photo: shutterstock
